Starbucks shares plunge after reporting mixed quarterly results

Starbucks (SBUX.US) stock fell more than 7% after the coffee chain posted mixed quarterly figures. Starbucks earned $1.00 per share slightly above market projections, however revenue and global comparable-store sales fell short of analysts’ estimates. Starbucks saw a particularly negative impact on its results from a resurgence of Covid-19 in the key China market which forced the company to close many stores and overshadowed a strong performance by its U.S. business.

Starbucks (SBUX.US) stock launched today's session with a bearish price gap, below the lower limit of the wedge formation. If current sentiment prevails, downward move may accelerate towards local support at $97.50, which is marked with 38.2% Fibonacci retracement of the upward wave launched back in March 2020. Source: xStation5